Bill Text - SB41 (2019)

Relative to historical racing.


Revision: Jan. 14, 2019, 2:39 p.m.

SB 41-FN - AS INTRODUCED

 

 

2019 SESSION

19-0845

08/10

 

SENATE BILL 41-FN

 

AN ACT relative to historical racing.

 

SPONSORS: Sen. French, Dist 7; Sen. Birdsell, Dist 19

 

COMMITTEE: Ways and Means

 

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ANALYSIS

 

This bill defines and regulates pari-mutuel pools on historic horse racing.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19-0845

08/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT relative to historical racing.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Limitation; Application of Chapter to Historic Racing.  Amend RSA 284:1 to read as follows:

284:1  Limitation.  This chapter shall be construed to apply only to running or harness horse racing, whether live, [or] simulcast, or historic, or simulcast dog racing.

2  Racing and Charitable Gaming; Historic Racing.  Amend RSA 284:6-a, VI to read as follows:

VI.  The lottery commission shall not authorize the use of any electronic gaming device in connection with the acceptance of wagers on running or harness horse racing, whether live, [or] simulcast, or historic, or simulcast dog racing, the type of which was not in use prior to January 1, 2011, unless specific authorization for such electronic gaming device is enacted by the general court.  Electronic gaming devices shall mean and include all electro-mechanical instruments and devices used for the purposes of gaming, other than wagering on live, [or] simulcast, or historic horse racing or simulcast dog racing, whether in physical presence or through the Internet, and such shall include, but not be limited to, video slot machines and other gambling devices which function or are designed to function to emulate a video slot machine [or historic racing machine].  This section shall not be interpreted to prohibit licensees under RSA 284 from replacing equipment used in the conduct of wagering on live, [or] simulcast, or historic horse racing or simulcast dog racing, which type of equipment was in service prior to January 1, 2011, with updated or new equipment which are the functional equivalent of the machines which are being replaced, provided the equipment is not an electronic gaming device as described in the previous sentence.  This section shall not be interpreted as prohibiting licensees from accepting account wagers in compliance with applicable rules and regulations.

VII.  Notwithstanding the provisions of RSA 284:6-a, VI, the lottery commission shall authorize wagers on historic horse races, whether on an electronic gaming device or otherwise, so long as such wagers meet the requirements of this chapter.

3  Rulemaking; Historic horse Racing.  Amend RSA 284:12, IV to read as follows:

IV.  The sale of pari-mutuel pools as authorized under RSA 284:22, [and] RSA 284:22-a, and RSA 284:22-b.

4  Investigation Fees.  Amend RSA 284:12-a, I to read as follows:

I.  No person, association, corporation, or any other type of entity shall hold any live running or harness race or meet, shall offer wagers on historic horse races, or shall conduct any simulcast running or harness horse or dog race or meet, at which pari-mutuel pools are sold without a license from the lottery commission.

5  New Section; Requirements for conducting Historic Horse Race Wagering.  Amend RSA 284 by inserting after section 15-d the following new section:

284:15-e  Requirements for Conducting Historic Horse Race Wagering.

I.  Any person, association, corporation, or any other type of entity who holds a license under RSA 284 to accept pari-mutuel wagers may accept wagers on historic horse races.

II.  Any person who holds a license under RSA 287-D may accept wagers on historic horse races.

6  New Section; Pari-Mutuel Pools on Historic Horse Racing.  Amend RSA 284 by inserting after section 22-a the following new section:

284:22-b  Pari-mutuel Pools on Historic Horse Racing.

I.  In this section:

(a)  "Historic horse race” means:

(1)  Any horse race, whether running or harness, that was previously conducted at a licensed pari-mutuel facility;

(2)  Concluded with official results; and

(3)  Concluded without scratches, disqualifications, or dead-heat finishes.

(b)  "Licensee'' means:

(1)  Any person who, as of December 31, 2017, holds a license under RSA 284; or

(2)  Any individual, association, partnership, joint venture, corporation, or other organization or other entity which holds a license under RSA 287-D and meets the requirements of RSA 284:15.

II.  A licensee under this chapter or RSA 287-D may sell pari-mutuel pools on historic horse races provided such sales are within the enclosure of the facility at which the licensee holds a license.

III.  In accordance with the provisions of RSA 284:6-a, wagering on historic horse races may take place on electronic gaming devices provided that:

(a)  All wagers use the pari-mutuel method of wagering;

(b)  A licensee at all times maintains at least 2 terminals offering the same type of wager on historic horse races;

(c)  The terminal makes available true and accurate past performance information on each historic horse race prior to the patron making his or her selections;

(d)  The terminal shall display a replay of each race, or a portion thereof, whether digital or by way of a video recording, and the official results of each race.  The identity of each race shall be revealed to the patron after the patron has placed his or her wager;

(e)  The terminals have been tested by an independent testing laboratory to ensure integrity and proper working order; and

(f)  Each terminal displays pool amounts that the patron will receive for a winning wager on each pari-mutuel wagering pool.

IV.  Racing officials, any employee or owner of the person who provides the totalizator system to the licensee, and any person responsible for the operation of the electronic reproduction equipment which operates the historic horse racing and wagering shall be prohibited from participating in wagering, directly or indirectly, on historic horse races offered at the licensee's facility.

V.  The licensee commission on all historic horse race pari-mutuel pools shall be at a rate of not greater than 12 percent.  In addition to the above commission, 100 percent of the odd cents of all redistribution based on each dollar wagered exceeding a sum equal to the next lowest multiple of 10, known as "breakage'', shall be paid to the lottery commission.  Each licensee shall pay the tax provided for in RSA 284:23.

VI.  Each licensee shall collect an amount equal to the tax provided for in RSA 284:23, I(b).  Each game operator employer as defined in RSA 287-D who is licensed to conduct wagering on historic horse racing under this chapter shall distribute 35 percent of the amount collected to charitable organizations with who the game operator contracts on each licensed game date.  The remainder of the total amount collected by the game operator employer under this paragraph shall be paid to the lottery commission for use according to the special fund established by RSA 284:21-j.

7  Effective Date.  This act shall take effect upon its passage.

 

LBAO

19-0845

1/7/19

 

SB 41-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to historical racing.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   Appropriation

$0

$0

$0

$0

   Revenue

$0

$152,534

$152,534

$152,534

   Expenditures

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Funding Source:

  [    ] General            [    ] Education            [    ] Highway           [ X ] Other - Lottery Fund

 

 

 

 

 

METHODOLOGY:

This bill allows for the installation of historic horse racing terminals at licensed racetracks and games of chance facilities in New Hampshire.  Based on the assumptions below, this bill is estimated to generate an additional $152,534 in lottery fund revenue for the facilities with eligible locations in FY 2021 and each fiscal year thereafter (pursuant to RSA 284:21-j, I, lottery fund balance, or net profit, shall be deposited in the education trust fund at the end of the fiscal year):

 

Assumptions

  • Currently 14 eligible locations will offer historic horse racing.  This includes 13 licensed game operator employers and 1 dual license in Seabrook that holds both game operator employer and racetrack licenses.
  • No changes in the number of eligible locations will change moving forward.
  • Each of the 14 eligible locations will maintain the minimum two terminals required by this bill.
  • Each location will generate average gross sales of $1,200 per terminal per day.
  • The Lottery Commission assumes this bill will be in effect July 1, 2019 with all devices being installed and operational by July 1, 2020.

 

 

 

FY 2021 and Each Year Thereafter

Racetracks

Total Historic Horse Racing Machines (1 Location X 2 Machines)

2

Total Annual Handle ($1,200 Per Machine X 2 Machines X 365 Days)

$876,000

Net State Revenue (1.25% of Total Handle)

$10,950

Games of Chance

Total Historic Horse Racing Machines (13 Locations X 2 Machines)

26

Total Annual Handle ($1,200 Per Machine X 26 Machines X 365 Days)

$11,388,000

State Revenue (1.25% of Total Handle)

$142,350

Less: 35% to Charity

($49,823)

Net State Revenue from Games Of Chance

$92,528

Total State Revenue

Total State Revenue from Terminals (see above)

$103,478

Estimated Unclaimed Tickets (0.25% of Handle)

$30,660

Estimated Breakage (0.15% of Handle)

$18,396

Total Estimated State Revenue

$152,534

 

The Lottery Commission states this bill will impact state expenditures by an indeterminable amount to regulate the historical racing terminals.  However, the Commission believes any increased expenditures would likely be minimal.  

 

AGENCIES CONTACTED:

Lottery Commission